Key Takeaways
- Bitcoin’s drop below $74,000 intensified after a wave of liquidations.
- Fund manager Michael Kramer warned Bitcoin could fall “much lower.”
- On-chain and technical signals remain bearish.
Bitcoin’s price fell below $74,000 on Wednesday after a sharp wave of liquidations swept through crypto markets, falling to a low of $72,000 on Thursday, with fund manager Michael Kramer warning the token could fall “much lower” as liquidity conditions tighten.
More than $230 million in leveraged long positions were liquidated within a single hour during the selloff, according to market data, accelerating the decline as traders were forced to unwind bullish bets.
Bitcoin Price Drops Sharply Over 24 Hours
The latest decline came as investors shifted away from risk assets following reports of US airstrikes on an Iranian military site near the Strait of Hormuz.
Bitcoin’s fall coincided with BlackRock’s iShares Bitcoin Trust recording one of its largest daily outflows on record.
Across derivatives markets, nearly $300 million in Bitcoin positions were liquidated over 24 hours, with long positions accounting for the vast majority of the losses.
The outflow added to spot selling pressure at a time when Bitcoin was already losing momentum.
CoinMarketCap reported Bitcoin’s next major support sits at around $72,650.
Kramer Warns Bitcoin Price Could Be Heading “Much Lower”
Kramer, founder of Mott Capital Management, said tightening liquidity conditions tied to upcoming US Treasury settlements could add further pressure.
“The main takeaway is that tomorrow begins a nearly $150 billion liquidity drain,” he added, pointing to a wave of Treasury bill and coupon settlements scheduled over the coming days.
The fund manager said equities had largely stalled despite earlier gains following the shift from Treasury paydowns to net issuance earlier this month, while Bitcoin had weakened more materially.
He added that a break below $75,000 could “set up a move towards $70,000.”
Bitcoin’s move below $74,000 indicates it has already fallen through the $75,000 support area Kramer highlighted, raising the question of whether the token can hold above the next key level near $72,650.
“That is something worth watching because, in my experience, Bitcoin tends to be a better liquidity indicator than most other instruments,” he added.
“If the Treasury settlements are a drain on liquidity, then Bitcoin could be heading much lower.”
Glassnode Warns Many Bitcoin Holders Are Sitting On Losses
The selloff also comes as blockchain analytics firm Glassnode warned that a growing share of Bitcoin supply is being held at a loss, a setup often seen during deeper market downturns.
Glassnode said the current supply overhang resembles conditions typically seen in bear markets.
The firm’s data showed Bitcoin trading around 39% below its October 2025 record high near $126,000.
Meanwhile, the amount of supply held at a loss had risen to levels associated with major correction phases in 2018 and 2022.
However, Glassnode’s data also suggested that the worst of the forced selling may be easing.
Earlier this year, large Bitcoin holders saw over $30 billion in losses during the first quarter.
This marked the largest capitulation event since the 2022 crypto market downturn, according to Glassnode.
Crypto Rover Warns of ‘Bloodbath’
Meanwhile, crypto commentator Crypto Rover recently warned that Bitcoin’s price action was at risk of deteriorating quickly.
In a May 23 post on X, the analyst said Bitcoin’s “price action could turn into a bloodbath quickly.”
“Last time Bitcoin got rejected from the topside of this bear flag,” the analyst wrote, “it dumped nearly 40% in 23 days.”
The warning was followed by another highlighted bearish signal.
Crypto Rover stated Bitcoin had swept liquidity above the widely watched Bull Market Support Band before reversing lower.
These moves are often viewed by traders as liquidity traps, where bullish traders are drawn into what appears to be a breakout before the price quickly turns lower, while short sellers are forced out too early.
Crypto Rover described the failed move as “not a good sign.”
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
